Hotels Should Focus on ROE instead of ROI

Every hotelier knows what ROI (Return on Investment) can be expected before deciding on any investment. Hoteliers now need to spend a considerable amount of time and money in increasing the levels of customer experience because the ROE (Return on Experience) is manifold.

The customer experience can help your hotel on many accounts. Not only can a memorable experience help in getting customer loyalty and increase in repeat guests, word-of-mouth will play a big role in getting more customers. Also, with the tech-savvy ‘always online’ traveler, guest reviews and ratings will play a deciding role in which destination the traveler chooses.

Here’s an example to show the difference between ROE and ROI – Suppose you buy a 55” TV to be installed in the guest’s room. It’s a great investment and you expect returns. What if the content that plays on the TV remains in the local language or is not suited to the guest’s likes. You get a poor return on your investment as the guest does not utilize the TV at all. Now, shift the approach to ROE and see how it works. Before your guest arrives, ask them their preferences and the kind of movies they like, and enter it in your system. Now, place a few of those movie DVDs near the same TV set and get pleased to know that the guest has thoroughly enjoyed watching it and appreciates your little gesture. It could even win you a positive review on TripAdvisor. This is the return you get if you shift your focus to enhancing the guest experience.

The sum of the parts is greater than the whole

It is more often the little details and the unique personal touch that the hotel provides, which make the most impact on the guest.

A hotel should decide its persona and it should reflect on its website, web presence, social media and also at the hotel premise with the staff and service.

The guest expects attentiveness, consideration, recognition and appreciation. With these four, the hotel can get a satisfied customer. To leave an impact and to create a memorable impression, the hotel needs to add a touch of uniqueness in its interaction with the customer and personalize it, which makes it a winning strategy.

Achieving this may not be a lot of work but definitely requires a lot of thought. Every hotel should aim for not just customer satisfaction but to create an experience that will leave an emotional impact for a lasting memory. Then and only then, with every guest that walks out of your hotel, you achieve not just a happy customer but a loyal ambassador for your hotel.